Okay, I do not want to lose this money, and I realize there are several opportunities to increase this amount, and many people would make themselves rich if they had this (or so I hear). Any ideas on what to do with this money, I am 17 (18 in less than a month) and am inheriting $107,000 or so from my dad's plane wreck (he was killed when I was 3, I get the money as soon as I'm 18 ). Half of it or so was made from the stock market (distributed over many stocks). I do not know much about money, but I am really interested in saving this, however, I plan to invest 30k into a truck, and maybe another 10 into necessities (things to put in a home). I realize cars are the worst investments, so don't feel the need to remind me unless it's going to seriously damper my chances of making this money increase. I really want to do good with my money and not throw it away. Let me know the best decision to further increase this money as time goes by. I want to live in a large house and spoil my kids rotten, I want kids by 27 and have a gorgeous and loving gf and hopefully we will have a very nice home for them to stay in (I know, unlikely). This is a lot of $ and am very fortunate, so please point me in the right direction. Thanks very much for reading this lengthy request.

Take care!

Is gambling on a roulette table (the 50/50 chance way) a good idea by any means, with say 5k or so? That is not exactly a lot and it doubles in a heartbeat, but I don't want to have a heart attack either if I lose it and try to gain it back :X!!!

quote: I'm at step 14 - I need to double my $40 into $80. (It would take 29 years to double by putting it into a savings account - what a wakeup call that is). I'm not good at selling - does anyone have any ideas on how I can do this?

Also, this guy says a savings account, he does nothing and his money doubles, I know it takes 29 years, but it is free. Can someone explain?

Lastly, this guy talks about stocks, I am very interested. Will be checking this post for replies hourly.

Sun Aug 07, 2005 12:05 am

General PattonNew Member

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About the savings account thing: Though there is no risk, there is also very little reward. If your willing to take your time looking into various investments you can get a higher faster return. 28 Years is a very long time to wait for such a small return.

Gambling is probably a bad idea, no matter what. At least with investing you can learn about whatever market your getting into and try to decrease your risks and increase your profits. Honestly, can you not find anything that will offer a higher chance of pay off than 50/50?

If your going to invest in the stock market, look at different strategies, and begin paper investing now. I suggest looking at stocks as a long term investment, at least 5-10 years, but I'm partial to Warren Buffets style. [can give more info on strategy if needed]

You can also look into the Forex, which is currency trading. Currencies are harder for people to manipulate, and the market is global 24/5, so it is a good investment for short term and long term.

Also, you could consider starting up a business of some sort, but people who start out at 17-18 rarely make it because of inexperience. So it would be better if you wait and get an understanding for business. Buying from wholesalers and selling on Ebay is a good way to make money.

Sun Aug 07, 2005 4:06 am

thebeavePreferred Member

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What I would do with that kind of money is first find some sort of duplex or something where if you had to you could live in half and rent out the other half. Make a down payment on that and use the rent income to make the mortgage payments. Then I would do some heavy research in the stock market and find some good 5-10 year stocks as General Patton said and invest some money in. Next I would try to find some good looking IPOs or some other stock that looked like it may gain value quickly and invest a small fraction in that just to see if it would make quick money, this would be a better bet than gambling.

I would also put probably around 20,000 in some sort of safe savings account or cd to know it will always be there. I know you said not to say anything about the truck but I would avoid that, that's just me though. That doesn't mean I would spend some on a car, but it would be like an old trans am or mustang for something like 7,000 or something, but that's just me.

I would also treat it like it wasn't there. What I mean by that is I would go to college and get a good job like I would if the money would have never been inherited. If invested right it can definately shave years off your retirement age. These are just all my opinions from someone about the same age as you. Do whatever you feel is right with it but just don't waste it.

Thank you very much General and Beave. You both used some terms I am not familiar with, and will do some research on, for instance; IPOs,

Beave, when you say rent out a duplex, do you mean purchase a duplex apartment complex and live in one and rent out the other? Sounds like a good idea to me but not sure if I am reading that right. I am very interested in this, for I will need a place to stay, so would building brand new duplex's be the solution or would that cost loads of $? I don't really know where to start with this but it sounds like a great idea, please elaborate bud, thanks!.

The 20k in a safe savings account I will do, thanks, the other stuff I will take to maybe a financial adviser (print out this page) and ask them to explain more about it.

I do plan to go to college, I am taking flight lessons to get my pilots license atm and am working towards becoming an airline pilot.

I could care less for the Savings account then, thanks for that General.

quote: ...and begin paper investing now...

What is paper investing? I am going to do some research on this as well.

quote: You can also look into the Forex, which is currency trading. Currencies are harder for people to manipulate, and the market is global 24/5, so it is a good investment for short term and long term.

A short explanation of how currency's are harder to "manipulate" would be great, because I don't understand what you mean when you say manipulate. I am guessing this has to do with trading currencies that have more value for less money, or however you would say that. I know that is why people buy overseas products from Japan, etc.

quote: ...Starting your own business and/or Buying from wholesalers and selling on Ebay is a good way to make money.

This is something that really caught my attention, so I am wondering if you have any good ideas on what brings good profit. How much money would it take to start a business of w/e kind you suggest. I have heard a lot about starting businesses, and I am more than willing to put in the time to go to college to learn how this works. My dream is to fly planes for an airline, so this may conflict with that, but also maybe not (you may be able to tell me if so). And if I could do the ebay selling on the side, I am very good with computers, I design and code websites (not a good career choice though), skin 3d models, and several other useful talents, so I could pretty up my ebay store if needed. Logo's really have a lot to do with sales, if you look professional they'll choose you over the unprofessional looking site, it's something you come to learn, representation has a lot to do with sales/business, but dont lecture me on this, this is of course my opinion, may not be right

Lastly, are there financial advisors I can talk to that will not ask for a good deal of money, and will point me in the right direction, the best advice I've gotten was free (from you guys) and maybe researching it on my own is the best way to understand. If you two don't mind me asking, how do you earn your income and what sort of assetts have you purchased or are/were you able to afford. It's an odd question, but maybe I could pay you guys a bit to give me some financial advice over the phone, unless you live in California, then perhaps we could meet up.

You guys are very intelligent and it reaks through your posts Extremely appreciated, priceless information.

Oh and if you're interested in my father, I made a small "in memory" clip, a lot of these photos were sepia tone, which I recolored from scratch (not knowing what color their clothes were). I hope you enjoy, I plan to make an entire memorial clip one day when I have enough pictures of him. My mom's voice quivered and eyes teared up over him for the first time after watching this, I don't even believe she cried at his funeral (they were divorced). It made me sob (not feeling sorry for myself) but because I genuinely am missing something great in my life.

Sorry about not elaborating on the IPOs. Thats just an initial public offering with stock, its like the first time it is released to the public for sale. With the duplex, yea thats what I ment that you rent out the other half and live in one half. I think it might be too costly to have one built but maybe there isn't any around you for sale either. That is just something I am really interested in and done some research on. Since you live in California, though, I would bet you could find a good duplex somewhere around you for sale.

As I said, I am only 18 so I don't have a huge amount of assets yet. I've spent a lot of time researching what I want to do with my money and plan to get into the duplexes and property as soon as I have the means to do so. What I do have investments in is the stock market and the stock market fascinates me. Don't ask me why because I don't know. I would recommend reading the Rich Dad line of books, you can do a search on google and find out information about them. They are crammed with information on good investing and how to turn little money into a lot of money.

I my opinion, $100,000 is NOT a lot of money. If I were you, I would act as if it did NOT exist. Get a financial planner at a reputable firm and get a divirsified portfolio. Let that money work for you and DO NOT spend a penny. Material things and fun can happen from income from your job or however you get money now. When the $100,000 becomes $1,000,000, then you can budget for a bit of wreckless fun with money. If you start buying trucks, trips, gambling, or splurging on whatever, the money will be gone in less than a year. I know, I blew more than $200,000 when I was 21 from my trust fund. Be smarter than me man.

Sun Aug 07, 2005 4:03 pm

General PattonNew Member

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[quote="Josiah"]

What is paper investing? I am going to do some research on this as well.

It is using fake money in whatever market. Basically you open up a demo account.

A short explanation of how currency's are harder to "manipulate" would be great, because I don't understand what you mean when you say manipulate. I am guessing this has to do with trading currencies that have more value for less money, or however you would say that. I know that is why people buy overseas products from Japan, etc.

Basically, you buy low and sell high. Of course you need your own investment strategy to tell you when the price is low.

Alright, 1.5 trillion moves through the Forex market a day, versus around 22 billion a day in the stock market. How the market moves depends on fundamental things, and techinical things which as based off of fundamentals. It is harder for anyone invididual or even group to manipulate the market like you can with stocks, simply because the market is so large and based off of different fundamental factors. It is dealing on a global level. If one currency looks like a bad investment, then trade another one.

This is something that really caught my attention, so I am wondering if you have any good ideas on what brings good profit. How much money would it take to start a business of w/e kind you suggest. I have heard a lot about starting businesses, and I am more than willing to put in the time to go to college to learn how this works. My dream is to fly planes for an airline, so this may conflict with that, but also maybe not (you may be able to tell me if so). And if I could do the ebay selling on the side, I am very good with computers, I design and code websites (not a good career choice though), skin 3d models, and several other useful talents, so I could pretty up my ebay store if needed. Logo's really have a lot to do with sales, if you look professional they'll choose you over the unprofessional looking site, it's something you come to learn, representation has a lot to do with sales/business, but dont lecture me on this, this is of course my opinion, may not be right

Well, for ebay, you need to find your niche. Find a product that you can buy in good amounts and resale it on ebay. It does not take very long and can be very rewarding.

quote: I saw your post on Money-Talk.org and I'm sorry to hear about your loss.

However, on to your question. What and where can you invest $100k. The good part is, for a few grand you can be in business.

I average $30,000 a month from home ( email me for my bank statement) and the business I'm involved with is in the 5 trillion dollar a year travel industry.

The best part is...there is NO selling involved. All you do is place ads and get people to call a toll free number with your assigned ID#. Every time the close a sale for you, they send you a cashiers check for $1000 by Priority Mail.

It only a $1995 start up investment and some money for marketing.

If you're interested you can go to my site www.VacationMillions.com & fill out your information to receive updates from my newsletter. You will then be redirected to my other website where you can learn how I make $30,000 + a month from home.

Good luck!

I got this offer in a PM, I am a bit skeptical (who isn't these days), but no offense to Mahmoud. My question for you is, is this a known scam or does this sound legit. It sounds tough and is clearly a big risk of failure, wondering if there are anyone who have tried this. He is well beyond successful, so congrats with that Mahmoud.

Basically, you get the starter kit for 2k, and then you put their ads in papers (business opportunity ads) and magazines, television and a fullpage ad in a magazine or so costs 10k. Let me know if this sounds legit to you. Every person who calls in and buys the kit gets you 1k to the penny, and a fullpage ad in a magazine that cost him 10k brought in 39k (39 calls) for him.

Thanks a lot guys, you're a big help.

Mon Aug 08, 2005 1:50 am

$1000aDayMember

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Josiah,

Like I was telling you last night, $2,000 does not pay for a "starters kit," you're buying an ACTUAL product and have the right to become an affiliate by reselling it. Do your due diligence on Coastal Vacations and draw your own conclusions. I've show you documented proof by a notary republic that it works, including my bank statement for $38,000 for the month of July.

You say it sounds tough and that there is a BIG risk of failure? And your idea of taking your inheritance and gambling it on a roulette table isn't running yourself a risk of failure?

Its a business like anything else. Your only job is marketing and if you feel that you cannot be successful when ALL you have to do is place ads while other people close your sales, then this is not for you.

I have people placing $100 ads and making a sale or two off of them, so I'm not sure why you got the impression that you must spend $10k on marketing. I'm just sharing with you the marketing methods I use.

Again, do a Google on Coastal Vacations!

ps there is absolutely nothing wrong with being skeptical, but had I remained close minded and thought everything must be too good to be true, I would not have been fortunate enough to be where I am today.

Good luck!

Mahmoud

Tue Aug 09, 2005 3:18 am

bong12187Preferred Member

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Re: What to do with MY $100,000 dollars? (inherited)

Joshua, Your options are limited. You are only 17 turning 18. You have no credit history so using the bank as OPM will not work great for you. Real estate, creating your own business, gambling, buying stocks and bonds etc. are all risky if you don't know what you are doing. My only suggestion for you right now is to become financially literate. Some of the things you need to learn is taxation (take a two week course to learn basic taxation), real estate ie, flipping, no cash down, fixer upper, passive income, cash on cash return, due diligence, phantom income etc ( you can buy some books to read), stocks and bonds (you can buy some books, go to stockchart.com or talk to people on this board about how they are doing it). 100k is not alot. Right now, you can't even go to a bank and purchase a rental property or create your own business since you have no credit history. You might be able to do it but you will have to invest a big chunk of your 100k. Good luck to you. You are doing the right thing and I hope that you do well.

Tue Aug 09, 2005 5:11 am

thebeavePreferred Member

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I agree with bong12187. It is always good to read as much as you can about investing and everything about it. Like I said earlier, the Rich Dad line of books is great and it helped me a lot. There are also a ton of other books out there that will answer many questions and give birth to many ideas.

quote:Originally posted by thebeaveI agree with bong12187. It is always good to read as much as you can about investing and everything about it. Like I said earlier, the Rich Dad line of books is great and it helped me a lot. There are also a ton of other books out there that will answer many questions and give birth to many ideas.

Great advice!

Robert Kiyosaki has some great books.

And check out his Rich Dad Poor Dad forum for more tips on making money with REI... I even have my testimonial to my success with Coastal on Rich Dad Poor Dad

quote:Originally posted by thebeaveI agree with bong12187. It is always good to read as much as you can about investing and everything about it. Like I said earlier, the Rich Dad line of books is great and it helped me a lot. There are also a ton of other books out there that will answer many questions and give birth to many ideas.

I agree with bong12187 too. You have a nice chunk of change and are young. Avoid risky investments until you understand the risk.

Spending 30% of it on a truck is not a wise move. Insurance, gas, repairs,
maintainance, etc ....

Look at putting the money in to a CD for now. Now a 3.5-4.0% return
is not that great but you could look at the return as college spending
money or (not advised) the lease payment on a vehicle, if you are
able to obtain financing.

Sun Aug 14, 2005 7:26 pm

NiallMember

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Location: New Zealand

Hi Josiah

I see you are going well here. $100k inherited and a $2500 check out of the blue in the post (different thread)

Bricks and Mortar.

Get on the Internet, Get in your car, look thru the neighbourhood. contact local Real Estate agents and ask them for any properties on their books a while. Seller may want to shift it pretty quick so could accept below what is advertised.

That is what I am at over here in New Zealand. Only got my finger out recently so starting slowly. However bought our home last year for $30k below value just for offering 20% below asking.

Okay this is a long drawn out reply sorry

Bricks and Mortar is a start but try to spread it out.

Cheers,

Niall

Ps. Understand the difference between an Assett and a Liability. A car may seem and assett but each time you go to the Gas Station does it pour money into your Pocket?!?!? Somthing to Think About.

Mon Aug 15, 2005 1:37 am

acontreras3First Time Poster

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Location: GA

What to do with your $100,000.

I would definately not invest in a $30,000 truck because a new automobile is the worst investment you can make. Go for a cheaper alternative such as a $20,000 truck or less if possible. Take the rest of the money and purchase a franchise such as a 7-Eleven which can be done for approximately $75,000. Get a career going for yourself at 18! Can't beat that.